Barbara
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Oil, Gold Show Inflation - 2008/01/14 19:03
Hello traders! It was about time to update this section with some fresh news, so here we go. 
Just because oil trades above $100 a barrel, gold fetches more than $900 an ounce and U.S. consumer prices climb at the fastest rate in two years, now is NOT the time to buy U.S. government securities protected from inflation.
That, at least, is the conclusion of Brown Brothers Harriman & Co., Vanguard Group Inc., JPMorgan Chase & Co., FAF Advisors and Blackrock Inc., which oversee about $1.5 trillion in fixed- income assets. Treasury Inflation Protected Securities, which produced the best returns for government debt last year, will prove disappointing in 2008, as the economy struggles with myriad signs of its first recession in six years, the money managers say.
TIPS lost money in December, the first drop in six months, and the government will likely say Jan. 16 that its consumer price index rose 0.2 percent in December, after surging 0.8 percent in November, according to the median estimate of 21 economists surveyed by Bloomberg News.
Evans said he's reducing the average maturity of TIPS in his fund to limit risk from declines. He's also considering shifting more assets into foreign inflation-protected debt.
Very interesting...
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